What is a Reverse Mortgage?
A reverse mortgage is a home-secured loan that can turn part of the equity you’ve built up in your house into funds you can use today, or a line of credit that will be there when you need it. Specifically designed for homeowners age 62+, it offers all the benefits of a traditional line of credit that you can get from a bank but with additional benefits — including a flexible repayment feature. As with any mortgage, the title to the home remains in your name, not the lender’s. As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance and keeping your home in good condition.
At a minimum, to be eligible you must be 62 years of age or older; you must have a certain percentage of equity in the home; and the house must be your principal residence. For more information, visit our eligibility page.
Why a reverse mortgage?
A reverse mortgage is a great way to access your home's equity to supplement your income, establish a "rainy day fund" or meet a variety of other financial goals. And with its flexible repayment option, it offers homeowners greater control over their finances. As with any home-secured loan (or mortgage), you must meet your loan obligations, keep current with property taxes, insurance, maintenance, and any homeowners association fees. But how do you know if you are eligible for a reverse mortgage?
How much can you receive?
The amount that is available generally depends on four factors: your age, the current interest rate, the appraised value of the home, and government-imposed lending limits*.